Xingmei Holdings issues HK$300 million in convertible bonds to expand the number of cinemas

Xingmei Holdings announced on the evening of November 3 that the company will enter into a subscription agreement with subscriber Tianxing International. Xingmei Holdings stated that it plans to use the net proceeds to develop its existing business, including the company's number of movie theaters.

Xingmei Holdings Group Co., Ltd. announced on the evening of November 3 that after the trading hours of that day, the company entered into a subscription agreement with the subscriber Tianxing International.

Pursuant to this, Tianxing International conditionally agreed to subscribe in cash for convertible bonds with a principal amount of HK$300,000,000 due in 2017 (which the bondholders may at their discretion extend to 2018), with an interest rate of 4% per annum.

The announcement showed that the initial conversion price was HK$0.77 per share, which was approximately 8.45% higher than the closing price of HK$0.71 per share quoted on the Stock Exchange on the date of the subscription agreement.

Based on the initial conversion price of HK$0.77 per conversion share, a total of 390 million conversion shares will be allotted and issued upon the full exercise of the conversion rights attached to the convertible bonds. Xingxingmei Holdings 'existing issued share capital is approximately 2.99% and approximately 2.91% of the company's issued share capital as enlarged by the issue of conversion shares.

The conversion shares will be issued under general mandate and the net proceeds from the subscription (net of related expenses) are estimated to be approximately HK$299,550,000.

Xingmei Holdings said it plans to use the net proceeds to develop its existing business, including the company's number of movie theaters.

Editor: vian